ISLAMABAD (MNN); Pakistan has decided to repay a $2 billion loan to the United Arab Emirates by the end of the current month after Abu Dhabi requested early repayment, sources revealed.
The funds, which were kept as a safe deposit in Pakistan’s account, are expected to be transferred to Abu Dhabi in the coming weeks.
Officials familiar with the matter said Pakistan had been paying approximately 6 percent interest on the deposit. Although the UAE had previously rolled over the loan, it has now sought immediate repayment.
Sources added that the facility had been extended for a short term in December 2025, but under the current arrangement, the UAE requested its return.
Pakistan has formally decided to repay the full amount within the specified timeframe.
The move comes as Islamabad continues efforts to manage its external financial obligations and maintain stability in foreign exchange reserves.
